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Michigan State Employee Retirement Planning

Michigan provides retirement benefits for qualified state employees. If this is you, we understand that navigating state plans can be challenging.

Our proprietary process called The Tailored FORMula is how we listen to your specific needs as a state employee, identify your risk tolerance, and determine your growth goals to get you started towards a meaningful retirement. 

You’ve been a public servant your whole career. Now it’s time to have someone else serve you. We at Premier Financial are happy to take on that role.

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Michigan Public Employee Retirement System

There are two retirement plans for Michigan State employees: Defined Benefit (DB) and Defined Contribution (DC) plans. Your hire date and any elections you made under the Public Acts determine which plan you belong to. (The Public Acts establishes eligibility rules for these two retirement plans in the state of Michigan.)

Defined Benefit Plan (DB)

Defined Benefit Plan (DB)

This plan is offered by the State of Michigan as a traditional pension plan. It applies to employees hired before March 31, 1997 (with some exceptions) and provides a fixed monthly retirement income based on a formula that considers your salary and years of service. This plan offers predictable income after retirement and we can help organize this with you.


Benefits of a DB plan include:

Benefits of a DB plan include:

Guaranteed income

with a predictable, fixed monthly payment after retirement.

Security against market fluctuations

because your DB plan is not directly tied to investment performance, protecting you from potential market downturns.

Based on salary and service

calculated using a formula that considers your salary and years of service with the state.

Potential for survivor benefits

to your spouse after your passing, providing them with a level of financial security.

Employer-funded

by the State of Michigan, ensuring there's enough money to pay out benefits even if the initial investment funds fall short.

Defined Contribution Plan (DC)

Defined Contribution Plan (DC)

This plan offered by the State of Michigan is similar to a 401(k) plan and focuses on employee contributions and investment growth. It lets you invest your pre-tax salary for retirement with the state matching your contributions up to a certain limit. You choose how to invest, and the benefit amount depends on your contributions, the match, and investment returns. While there's no guaranteed income, the potential for growth can be significant.

Benefits of a DC Plan include:

Tax advantages

because your contributions are made with pre-tax dollars, which lowers your taxable income for the year.

Employer match

since the State of Michigan contributes additional money to your retirement savings.

Investment control

because you control how your retirement savings are invested, allowing you flexibility to potentially grow your retirement savings more than a guaranteed benefit plan.

Plan mobility

if you decide to leave your job with the State of Michigan to then take your DC assets and roll them over into a new employer's plan or an IRA.

Michigan Teacher Retirement System

For public school educators in the State of Michigan, there’s a separate retirement system called the Michigan Public School Employees’ Retirement System (MPSERS).

The MPSERS is a defined benefit plan which means it’s similar to the state employee’s DB plan, offering a fixed monthly income after retirement. This is based on your salary and years of service. MPSERS may also offer subsidized health insurance plans for retirees.

MPSERS applies to most public school teachers and other school district employees in Michigan.

If you’re a teacher or public school district employee, let us help you get the most out of your retirement so you understand all that your MPSERS plan has to offer. You've dedicated your life to education, now it's time to relax, recharge, and enjoy retirement. Schedule a call with our team today.

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Book an appointment to learn more about your retirement options with one of our financial advisors today.

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